Sirius and XM report Q1 results

Sirius and XM report Q1 results

Sirius ended the first quarter of 2008 with 8.64 million subscribers, up 31% from 6.58 million at the end of Q1 2007.

XM ended the first quarter of 2008 with 9.33 million subscribers, up 18% from 7.91 million at the end of Q1 2007.

Sirius's total revenue for Q1 2008 was up 33% to $270.4 million (Q1 2007: $204m).

XM's total revenue for Q1 2008 was up almost 17% to $308 million (Q1 2007: $264m).

Sirius reported a net loss of $104.1 million in Q1 2008, a 28% improvement over a net loss of $144.7 million in Q1 2007.

XM's reported a net loss of $129 million in Q1 2008, a decline of almost 6% compared with a net loss of $122 million in Q1 2007.

For Sirius, satellite and transmission expenses dropped by $0.3 million as a result of lower maintenance expenses, and engineering, design and development expenses dropped $3.9 million, due to reduced OEM and product development costs.

However, customer service and billing expenses increased by $4.9 million, primarily attributable to call centre operating costs which increased to accommodate the growing subscriber base, and general and admin expenses increased by $13.3 million, mainly as a result of higher litigation- and compensation-related costs to support business growth.

Merger-related expenses accounted for $3.5 million of XM's operating loss.

On March 24, 2008, the US Dept of Justice advised XM and Sirius that it had ended its investigation into their pending merger without taking action to block the transaction. That decision means the DOJ concluded that the merger is not anti-competitive and that it will allow the transaction to proceed.

Both companies obtained stockholder approval in November 2007. The pending merger is still subject to approval by the Federal Communications Commission.


Leave a comment

Your email address will not be published. Required fields are marked *